When you run out of storage space

[BrickLegacy]

Hey guys,

 

First let me thank everyone for all the amazing deals, tips and information.  This hobby is very addicting and I've learned a lot in a very short amount of time.

 

I've been accumulating sets rapidly since the Fall of 2013. I have shelving dedicated to my collection in the basement but it's starting to spill over. My wife recently decided she wants to organize and finish the basement. I'm on board with this but it presents a huge problem.  I need to consolidate my collection and my timeline to beginning selling is now accelerated.  I was originally planning to hold out until Christmas of 2015 before selling anything.  Most of the veterans recommend selling a few sets before getting into this too deep.  I guess that time is now for me.

 

I'm looking for some advice on selling and I have a few questions.

 

1) When you run out of room, what do you typically do?  Stop buying altogether?  Sell your losers or marginal gainers?  Dump inventory at a loss?  Take a break for 6 months and just build?

 

2) Tax advice: most of my sets were purchased in the past twelve months.  I don't want to risk anything with the IRS.  Should I simply contact a tax accountant to get my record keeping up to par?  I have my receipts and have been tracking purchases since day one but I have no clue how to properly calculate profit or capital gains once things start to sell.

 

3) Shipping: I think everyone uses USPS.  I probably need to buy a scale.  I keep as many boxes and shipping materials as I can.  Do you invest in a label maker too? 

 

4) What should I sell?  I have some sets that have already appreciated.  I have other sets that I'm not too optimistic about.

 

Here are some highlights of my collection.  All set quantities (in parenthesis) are estimates.

 

Potential Profit:

Jabba's Palace (10) 

Constitution Train Chase (10)

MHC Cannon (10)

Helms Deep (2)

Two Face Chase (3)

Martian Manhunter (5)

Darth Revan (5)

Mirkwood Elf Guard Poly (20)

 

Losers or sets I don't see appreciating any time soon:

Attack of the Wargs (10)

Vampyre Castle (4)

Sail Barge (5)

Republic Gunship (5)

Millennium Falcon (4)

 

I also have some LOTR / Hobbit that I'm not sure about:

Unexpected Gathering (10)

Black Gate (4)

Mines Moria (2)

Goblin King (1)

Barrel Escape (8 )

 

Any obvious sets to dump at this point?  I'm not emotionally tied to most of these.

 

Any advice would be appreciated.  I'm basically looking to free up some shelving space, regain some capital for the holiday season, and get some practice selling.

 

Thanks in advance for your input!

[jaisonline]

Well, I can answer some of your questions.

3) USPS Priority is great for postage until you hit about the 3 pound mark. Then FedEx and UPS Ground becomes much more cost efficient especially after 8 pounds. If you have a biz account, UPS and FedEx will save you even more. I think DINM wrote a blog on this topic.

1) harder said than done, when I completely ran out of space in the past, I bought new shelving units. However, I can't fit anymore in my house or the wife will put on riot gear and come after me (and rightfully so). I begin selling off sets that are more than 3 years retired (start with the older ones first) or sets that I feel have peaked (e.g. 2012

[justafrog]

Re taxes: Yes, consult an accountant, now is a good time because it's their "off" season. They will save you much more than they cost by letting you know what you need to track and keeping you out of trouble.

[Grolim]

As for space restrictions, I tend to use all sorts of spots around the house.  Our walk in closet has been my main storage room, but I have spillover under the bed, another couple of closet shelves, and have even taken to stacking some in the corner of our bedroom (wife ain't too impressed but I won a rare battle there).

 

Tax implications - I'm not from the US so different rules apply.  Keeping detailed records and paperwork is a good start as it's an area a lot of people fall down on.  This thread is a good read on some tax issues: http://community.brickpicker.com/topic/7690-tax-implications-of-selling-lego-split-thread/?hl=tax

 

Shipping - there are a lot of threads on shipping, have a bit of a hunt around and you may find more.

 

Selling your sets - I think the majority of what you have still has potential growth upside, so I wouldn't be in too much of a rush to sell.  Unless you need/want to free up some of that capital to put into other sets.  Just check out each individual sets Brickpicker page, look at the growth charts and see what ones you think have tailed theier growth off a bit.  Then look at selling those.

[holleman67]

Usps has only be friendly to me when shipping minifigures. I check both FedEx and usps every package and I rarely go usps. The only time I do is for getting something to its destination a little faster. Get a scale, tape measure, and set up a FedEx account. Once done, call FedEx and ask them for pages to print labels on. They are wonderful and you'll never look back. Sieve usually isn't an issue for me do the thing I would recommend is not selling at a loss. Keep those sets for Christmas and sell them off in hopes the holiday season well give you that bump in profit to keep you in the green.

[jaylay]

i usually slow down on buying sets if space is an issue.  ill only buy the hot sets or sets i truely like.  then ill only buy sets at extremem discounts ...

list that vampire castle starting sept.  and let it ride until halloween ... should be a hot seller.

[stephen_rockefeller]

You will never run out is space, the question is do you want to pay for space??

[Migration]

Another thing to consider is what you paid for your sets, I grabed a bunch of Constitution Train Chases at Wal-Mart for $50 on clearance, with that buy in and with them currently selling around $100ish shipped a respectable profit can be had. Yes, I would prefer to sell them at $150, but if you need to clear space those are some big boxes.

Same for the MHC- Cannon, if you got them during the Target price eff up, then you should be able to sell now and still come out ahead.

[BrickLegacy]

Thanks for the feedback guys.  As jaisonline pointed out, I'm not soliciting to sell.  I'm just looking for advice on what to sell first to free up space.  I plan to sell on eBay and/or through Brick classifieds.  I'll probably avoid Craigslist.

.

@Migration - yes, I bought in at a discount for most of these.  Constitution Train was $50, Canon was $17, Jabba's Palace was $80. I tried to only buy at a 25%+ discount for most of these, with a few exceptions where I paid close to retail at EOL (Helm's Deep, for example).

 

@stephen_rockefeller - I've considered the storage unit option but worried about interior climate, theft and cost.  Maybe there are other options like rental space in a warehouse or office?  I don't currently use my own attic because I'm concerned about it being too hot.  I'd like to hear everyone's opinion on attic storage and/or 3rd party storage locations. 

 

@jaylay - I might list a few sets around the holidays and/or Halloween at a competitive price and see what happens.

 

@holleman67 - thanks for the FedEx tips.  I hate going to the post office so I'll definitely look into this.

 

@Gromlin - we have extra space around the house but my wife won't be too pleased with that  The attic is an option but I've heard that can damage the sealed sets.

 

@justafrog - I read through the tax thread Gromlin posted and you had plenty of good tips.  The good news is I already have an accountant I trust to do my taxes.  I just need to setup an appointment regarding this.  I can't wait to see what his reaction is when I tell him I'm selling LEGO on ebay. 

 

@jaisonline - thanks for the tips.  I'll be looking into a FedEx account to ship. I bought a edsal shelving unit last night and it helps with the exclusives. I might try and flip some sets over the holidays like you suggested.

 

I think my plan of attack is as follows:

1. Open a FedEx account
2. Buy a scale
3. Look at my current shelving setup and see if it can be organized better.
4. Limit buying.
5. Call a tax accountant.
6. List a few sets over the holidays that have flip potential.

Thanks again for the advice everyone.  Any additional feedback or comments are welcome.

[minicoopers11]

Fedex Ground beats USPS Parcel Select regularly?

[@rtisan]

You could always buy one of those shipping containers and park it in the front lawn. 

[DoNotInsertIntoMouth]

I haven't run out of space yet, but my general thought is that at that point I will be hopefully selling enough to off-set what I am brining in. Whether that is true or not, we will see. lol.

[holleman67]

Fedex Ground beats USPS Parcel Select regularly?

9 out of 10 and I trust FedEx over usps any day.

[oneknightr]

9 out of 10 and I trust FedEx over usps any day.

I wholeheartedly agree. I hate USPS with a passion. The only time I use them is when I ship out loose minifigures. It's no surprise that they're losing millions of dollars each year. 

[minicoopers11]

I wholeheartedly agree. I hate USPS with a passion. The only time I use them is when I ship out loose minifigures. It's no surprise that they're losing millions of dollars each year. 

It's complicated, but they're losing billions per year, lately. They do have gov't imposed mandates they must follow (such as providing low-cost shipping to extremely remote areas at a massive loss), but there are other issues of course. Still, I don't understand people that hate USPS with a passion. Why? Personally, I've had problems with every carrier. I haven't had disproportionate problems with any carrier. **** happens. Overall, the service I get from USPS has been fantastic.

[knarrff]

I wholeheartedly agree. I hate USPS with a passion.

Sometimes USPS is just a lot cheaper. Most of my stuff comes via USPS or UPS and I didn't have a problem with one of either yet. Maybe your problem is only local? (or my good experience is local...)

[jaisonline]

here is a post i made comparing ups and usps rates for shipping a 10221 using Emazer's post.

 

http://community.brickpicker.com/topic/11319-10221-super-star-destroyer-eol-and-other-topics/?p=318430

 

in summary for shipping one 10221 SSD from Balt (21220) to Cali (90017). 

$400 insurance.

20 pounds.

24"x 8"x 20" Box

USPS Priority will cost $61.35 (buying online)

USPS Standpost =  $44.96.

UPS Ground = $27.84 (entry level biz account)

UPS Ground = $42.71 (no biz account)

Fedex Ground = $33.69 (no biz account & no insurance)

Fedex Ground = $30.32 (standard -10% biz account & no insurance)

[spener90]

I haven't run out of space yet, but my general thought is that at that point I will be hopefully selling enough to off-set what I am brining in. Whether that is true or not, we will see. lol.

Trust me, it doesn't really work that way.  My 17 Epic Dragon Battles are proof...

[minicoopers11]

here is a post i made comparing ups and usps rates for shipping a 10221 using Emazer's post.

 

http://community.brickpicker.com/topic/2593-10221-super-star-destroyer-eol-and-other-topics/?p=318430

 

in summary for shipping one 10221 SSD from Balt (21220) to Cali (90017). 

$400 insurance.

20 pounds.

24"x 8"x 20" Box

USPS Priority will cost $61.35 (buying online)

USPS Standpost =  $44.96.

UPS Ground = $27.84 (entry level biz account)

UPS Ground = $42.71 (no biz account)

Fedex Ground = $33.69 (no biz account & no insurance)

Fedex Ground = $30.32 (standard -10% biz account & no insurance)

Thanks. Are the entry level business accounts free?

[jbacunn]

I would suggest taking a hard look at your inventory over the next month or so and sell off the sets that are not true "winners" during the Christmas season where you can at least make your money back on them. Everybody buys sets that they wish they didn't in retrospect and if they are just going to sit taking up space without any real growth in value then it's better to cut bait so you can use that space and money for sets that are winners.  

[jaisonline]

Thanks. Are the entry level business accounts free?

 

yes. 

[holleman67]

here is a post i made comparing ups and usps rates for shipping a 10221 using Emazer's post.

http://community.brickpicker.com/topic/2593-10221-super-star-destroyer-eol-and-other-topics/?p=318430

in summary for shipping one 10221 SSD from Balt (21220) to Cali (90017).

$400 insurance.

20 pounds.

24"x 8"x 20" Box

USPS Priority will cost $61.35 (buying online)

USPS Standpost = $44.96.

UPS Ground = $27.84 (entry level biz account)

UPS Ground = $42.71 (no biz account)

Fedex Ground = $33.69 (no biz account & no insurance)

Fedex Ground = $30.32 (standard -10% biz account & no insurance)

I used shipsurance.com for my cafe corner that sold for $800. Insurance cost me about $4.50 which was he'll of a lot cheaper than anywhere else I've seen. I heard of them through justafrog. I didn't need to open a claim but everything was good and insurance was cost effective.

[minicoopers11]

I used shipsurance.com for my cafe corner that sold for $800. Insurance cost me about $4.50 which was he'll of a lot cheaper than anywhere else I've seen. I heard of them through justafrog. I didn't need to open a claim but everything was good and insurance was cost effective.

I've been considering third party insurance as well. Haven't started selling super high value sets yet, so haven't had much of a need for insurance. I think this would be a great idea for a blog article...shipping insurance.

[holleman67]

I've been considering third party insurance as well. Haven't started selling super high value sets yet, so haven't had much of a need for insurance. I think this would be a great idea for a blog article...shipping insurance.

I agree it would make a good article. I don't know enough about the topic nor am I able to speak properly so anything I would do would be counterproductive.

Usually my sales aren't over $200 per item. I sold a 10175 Vader tie fighter for $550 and paid usps for insurance which was jacked up high. So when I posted my cafe corner I looked for alternatives and remember justafrog mentioning previously mentioned company.

[oneknightr]

Sometimes USPS is just a lot cheaper. Most of my stuff comes via USPS or UPS and I didn't have a problem with one of either yet. Maybe your problem is only local? (or my good experience is local...)

For a few reasons:

 

- Their priority rates are really high when the weight is over a couple of pounds, but I do like how fast they get delivered. Parcel rates are ok, but it takes too long.

- Every post office where I've lived for the past three locations have been awful. Shortage of counter reps, so the lines are stupid long. 

- Tracking info used to be non-existent. My buyer would get the package long before any tracking info was available online. I do agree that it has gotten better since then.

- Fedex Ground rates are great as it's not as expensive as priority, cheaper than USPS parcel rate, and they get delivered in about 4-5 business days.

- Fedex stores are never crowded (at least in my neighborhood).

 

 

Back on topic: I've been collecting for a few years now and have recently begun to run out of space. There are only so many places I can hide my purchases without the wife finding out. =)   I've become more picky with my buys. I normally don't buy anything at 30% off unless it's a popular set or an exclusive. Sets that are 50% off aren't always automatic buys anymore (left plenty of Chima on the Target shelves lately). 

 

I always thought that I would sell something shortly after it retires, but I now convince myself that if I hold onto it that much longer, my returns would be better. I really need to start selling off some sets so I can free up some room.